Market structure dynamics
It all starts with the understanding of what you are up against…
The market will always have the last word. this is particularly true if your organization is unaware of what it is up against. Yet, history shows that many leadership teams develop strategic plans without factoring their market dynamics in a systematic manner.
Although there are more than one approach to come to grip with those dynamics, we have a strong bias for the Porter 5 Forces model.
Competitive landscape through the 5 Forces
Michael Porter’s 5 Forces model is certainly one of the most efficient way to come to grip with one’s industry competitive landscape. Both simple in its understanding and deep it its applications, the 5 Forces model is certainly enlightening when it comes to business strategy in a given industry.
Knowing your risks and opportunities before and while competing
Whether prior making an entry to a new market, or to steering the ship before it is too late, we have noticed that many organizations when they do, concentrate on 1 or 2 forces (industry pressure point). This is particularly true for SME’s. While it is wise and more intuitive to know with whom your are competing with (it is already a challenge to know who are your real competitors), it is only part of the picture. Moreover, it should be the least of your priority among the 5 Forces. In our opinion, the serious threats, the ones that will really damage your organization chances of profitability, come from the other forces. All our intelligence process is based on a solid analysis of our clients industry through the 5 Forces so that they see as clearly as possible what they are competing with now and what is to come that will shift the industry dynamics before it is too late.
Why it matters
Applying the 5 Forces model to improve an organization’s business strategy already offers enough benefits to leadership to command it use internally. But to us, it conveys a much more important benefit. It provides a filter for what information commands attention and what doesn’t. In the era of Big Data, the common mistake of many organizations, small and large, is to flood databases with information just because it is readily available. We strongly believe in the expression “the signal and the noise”. The 5 Forces model therefore provides an excellent framework to weed out the noise and concentrate efforts on the signals of interest to our clients. Once well calibrated to our clients, the model saves considerable resources, both in time and money. It also has the merit of bringing a more accurate perspective to support their mission critical decisions.
Exemples of application
The first rule of engagement in Business Strategy is profitability, not revenues. For business leaders, a thorough analysis of the 5 Forces may shed light on a profit scarce environment
UNEX, YOUR COMMERCIAL ARSENAL IN A FLASH
Inspired partly by the Japanese Keiretsu, UNEX is a Canadian Competitive Intelligence (CI) and Development Firm (IDF). With a full range of intelligence¹, analytics and business development services to facilitate its clients network globally, UNEX is here to assist you in maximizing your commercial options both at a strategic and tactical levels. Whatever market you chose to compete on, we are here to provide a full commercial arsenal at your disposal to maximize your competitive advantage.
From the executive room to the trenches
Our services are designed to assist both strategy and operations. Our strategic services are geared to serve decision makers at the board or executive room while our tactical services are specifically tailored for marketing, sales and business development functions.
¹Our intelligence services cover both Public corporations as well as privately owned companies.